Volga Gas Plans to More Than Double Output as Upgrades Gas Plant

Volga Gas Plc (VGAS), a Russia-focused oil and gas explorer, will eventually double output after completing the upgrade of a processing plant in the third quarter.

Production will initially rise to more than 4,000 barrels a day, from 2,550 barrels in the first half, before expanding to 7,000 barrels in the medium term, the company said today in a statement. The upgrade will be finished in the third quarter, as planned, Chief Executive Officer Mikhail Ivanov told Bloomberg.

The exploration company posted a first-half profit of $3.4 million, after a $5.6 million loss a year earlier, while sales grew 15.8 percent to $15.4 million, according to the statement.

The completion of work at the southern Russian plant by Volga Gas, controlled by Baring Vostok Capital Partners, will allow for greater development of the company’s gas licenses in the area and follows an earlier upgrade to the site last year.

“We expect to more than double gas and condensate production from our existing wells,” Ivanov said in today’s statement. “We plan further exploration on our existing licenses and will continue actively to search for opportunities to expand the Group’s operations” through acquisitions.

To contact the reporter on this story: Stephen Bierman in Moscow at sbierman1@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.